Difference Between Accrual And Provision

Accrual refers to the recording of Expenses and Revenues either paid or not received at the end of the accounting period while Provision is an estimated amount which is created to avoid loss to the business in nearer future.

Accrued Expenses are Current Liabilities and Accrued Revenues are Current Assets for the company so these are shown on the Balance Sheet while Provision is a Contra Account such as Allowance for Doubtful Accounts / Provision for Doubtful Debts, etc. These are deducted from the relevant accounts’s closing balances on balance sheet date.